Gujarat Clears Indian AI Research Organisation at GIFT City

Approval and Strategic Context

Gujarat Clears Indian AI Research Organisation at GIFT City: The Gujarat government has granted in-principle approval for establishing the Indian AI Research Organisation (IAIRO) at GIFT City near Gandhinagar. The decision marks a significant institutional step to strengthen India’s artificial intelligence research ecosystem. The approval was given under the leadership of Chief Minister Bhupendra Patel.

The initiative is aligned with the national vision of leveraging AI for inclusive growth and technological leadership. It aims to position India as a global hub for advanced AI research and applied innovation.

Static GK fact: Gujarat International Finance Tec-City (GIFT City) is India’s first operational smart city and international financial services centre.

Public-Private Partnership Framework

IAIRO will be established under a Public-Private Partnership (PPP) model. The partnership includes the Gujarat government, the Central government, and the Indian Pharmaceutical Alliance (IPA) as the anchor private partner.

This tripartite model reflects a coordinated approach between government and industry. It is designed to pool policy support, public funding, and sectoral expertise to create a sustainable AI research institution.

Static GK Tip: PPP models are commonly used in India for infrastructure and innovation projects to reduce fiscal burden while improving efficiency.

Legal Structure and Funding Pattern

The organisation will be registered as a Section 8 non-profit company under the Companies Act, 2013. This structure ensures that profits, if any, are reinvested into research and institutional development.

The total project outlay is estimated at ₹300 crore over five years. Funding will be shared equally, with the State government, Central government, and private partner each contributing 33.33%. The Indian Pharmaceutical Alliance will contribute ₹25 crore during 2025–26.

Alignment with National and State AI Policies

IAIRO aligns closely with the India AI Mission of the Ministry of Electronics and Information Technology (MeitY). The mission focuses on building computing capacity, fostering innovation, and promoting responsible AI adoption across sectors.

At the state level, the initiative supports the Gujarat AI Action Plan formulated by the Science and Technology Department. Gujarat has also constituted a dedicated AI Task Force to guide AI-led development strategies.

Static GK fact: MeitY is the nodal ministry for digital governance, electronics manufacturing, and emerging technologies in India.

Mandate and Core Functions

IAIRO is envisioned as a multidisciplinary AI research hub. Its mandate includes advanced AI research and development, creation of AI-driven products, and collaboration with academia, start-ups, and government agencies.

Key focus areas include intellectual property generation, capacity building, and policy-oriented AI research. The organisation aims to bridge the gap between foundational research and real-world applications.

Technology Infrastructure and Compute Model

The organisation will operate under a hybrid compute model. This model integrates on-premise high-performance infrastructure with scalable computing resources to support complex AI workloads.

Such an approach enables long-term research, secure data handling, and development of compute-intensive AI models. It also supports innovation in sensitive sectors requiring data sovereignty.

Static GK Tip: Hybrid computing is widely used in AI research to balance scalability, security, and cost efficiency.

Sectoral Impact and Development Goals

IAIRO is expected to drive AI-led interventions in healthcare, education, agriculture, and governance. The broader objective is to enhance quality of life while promoting sustainable development through responsible AI deployment.

By institutionalising AI research at GIFT City, Gujarat strengthens its position as a leading technology and innovation hub in India.

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Gujarat Clears Indian AI Research Organisation at GIFT City: